Question 1 [70 points] Ludwig Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding Ludwig Inc. and its activities during 2015 follow in (a) through (f): a. Assume all accounts have normal balances. b. $11,000 of the long-term notes payable will be paid during 2016. c. Equipment was sold for cash of $20,400. d. Old machinery was sold for cash of $21,400. New machinery was purchased for $24,000 cash. e. Share capital was issued for cash. f. Cash dividends were declared and paid. Using the information provided, prepare a statement of changes in equity, a classified balance sheet, and a statement of cash flows (using the indirect method) for the year ended December 31, 2015. (select one) Statement of Changes in Equity (select one) Ludwig Inc. Share Retained Total Adjusted Trial Balance Capital Earnings Equity December 31 Account 2015 2014 Accounts Payable 35,420 40,000 Accounts Receivable 60,800 58,625 Accumulated Depreciation, Equipment 1,100 86,000 Accumulated Depreciation, Machinery 10,500 74,000 (select one) Allowance for Doubtful Accounts 6,800 13,625 Balance Sheet (select one) Share Retained Total Capital Earnings Equity (select one) Balance Sheet (select one) Ludwig Inc. Adjusted Trial Balance December 31 Account 2015 2014 Accounts Payable 35,420 40,000 Accounts Receivable 60,800 58,625 Accumulated Depreciation, Equipment 1,100 86,000 Accumulated Depreciation, Machinery 10,500 74,000 Allowance for Doubtful Accounts 6.800 13,625 Depreciation Expense, Equipment 10,100 10,100 Depreciation Expense, Machinery 12,700 12,700 Cash 421,630 395,000 Cash Dividends 54,000 54,000 Equipment 8,000 122,000 Machinery.. 65,800 140,000 Merchandise Inventory 17,530 20,000 Long-term Notes Payable 53,570 67,000 Other Expenses (including losses). 590,000 35,000 Retained earnings 93,000 85,000 Revenues (including gains). 640,800 119,800 Share capital 353,000 313,000 Unearned Revenue 46,370 49,000 X + N (select one) Statement of Cash Flows (select one)